CITAC cheers Byrd Amendment repeal by Congress

In a statement released Feb. 1, the Consuming Industries Trade Action Coalition (CITAC) cheered Congress approving the repeal of the Continued Dumping and Subsidy Offset Act, commonly known as the "Byrd Amendment," with the 216-214 passage of the Deficit Reduction Act of 2005 by the House of Representatives. Repeal of the Byrd Amendment is a provision of the legislation, which was passed already by the Senate and now goes to President Bush for his signature.

In a compromise reached between House and Senate conferees, the repeal will be delayed for two years, and Byrd Amendment distributions will continue for entries made prior to Oct. 1, 2007.

"CITAC congratulates Congress for repealing the Byrd Amendment," said CITAC Executive Director Steve Alexander. "As recently as last month, many experts were saying we would never obtain congressional repeal of the Byrd Amendment during the current session. We congratulate the numerous consuming industries, consumer groups, and organizations that worked together so well to make this day possible. CITAC is proud to have taken a leading role in this effort."

According to CITAC's statement, since 2001 more than $1.26 billion has been distributed under Byrd Amendment rules, with more than one-third, or $476 million, going to a single corporation, the Timken Co., and two of its subsidiaries. More than half of the $226 million of Byrd Amendment payouts in 2005 went to five companies, and 80 percent of the payouts went to only 34 companies. Three industries benefited the most from Byrd payments: bearings, candles, and steel. CITAC said the amounts distributed to individual corporations can significantly distort the competitive structure of an industry and lead to a reduction in competition.

More information about CITAC can be found here.